Osaka announces MGM-Orix as IR partner
Osaka Prefecture has selected MGM-Orix as its partner for its IR bid.
Japan.- MGM Resorts International and ORIX (MGM-Orix) has finally been selected as IR partner by the Osaka Prefecture. The company’s proposal was analysed by a committee established by local authorities, who decided the company was qualified to develop the integrated resort.
MGM-Orix has proposed to invest JPY1tn (US$9.1bn). Osaka Prefecture is expected to submit its IR development plan to the national government in April 2022.
The other companies originally involved in Osaka’s request-for-proposal (RFP) process – Galaxy Entertainment Group, Genting Singapore, Melco Resorts, Sega Sammy Holdings and Shotoku Corp – all withdrew from the process.
The target opening date for the IR has been pushed back to sometime between 2028 and 2030. The Osaka government had asked potential contenders to assume the costs of extending the Osaka Metro line to the site, but authorities were afraid that as the only bidder MGM-Orix could renegotiate conditions.
Osaka also wanted its operators to add more MICE facilities beyond the requirements of national legislation but, according to Bill Hornbuckle, MGM president and CEO, the company’s IR may have less MICE space and fewer hotel rooms than expected.
